What is Ichimoku Kinko Hyo Indicator? - Definition of Ichimoku Kinko Hyo Indicator
Ichimoku Kinko Hyo indicator - Ichimoku Kinko Hyo indicators is a popular technical indicator that can be found on the - Indicators List on this website. Ichimoku Kinko Hyo indicator is used by traders to forecast price movement depending on the chart price analysis done using this Ichimoku Kinko Hyo indicator. Traders can use the Ichimoku Kinko Hyo buy and Sell Signals explained below to determine when to open a buy or sell trade when using this Ichimoku Kinko Hyo indicator. By using Ichimoku Kinko Hyo and other forex indicators combinations traders can learn how to make decisions about market entry and market exit.
What's Ichimoku Kinko Hyo Indicator? Ichimoku Kinko Hyo Indicator
How Do You Combine Indicators with Ichimoku Kinko Hyo? - Adding Ichimoku Kinko Hyo Indicator in MT4
Which Indicator is the Best to Combine with Ichimoku Kinko Hyo?
Which is the best Ichimoku Kinko Hyo indicator combination for forex trading?
The most popular indicators combined with Ichimoku Kinko Hyo are:
- RSI
- MAs Forex Indicator
- MACD
- Bollinger Band Indicator
- Stochastic Indicator
- Ichimoku Kinko Hyo Indicator
- Parabolic SAR
Which is the best Ichimoku Kinko Hyo indicator combination for Forex trading? - Ichimoku Kinko Hyo MT4 indicators
What Indicators to Combine with Ichimoku Kinko Hyo?
Get additional indicators in addition to Ichimoku Kinko Hyo indicator which will determine the trend of the forex market as well as others that confirm the market trend. By combining indicators that determine trend & others that confirm the trend & combining these indicators with Forex Ichimoku Kinko Hyo indicator a trader will come up with a Ichimoku Kinko Hyo based system that they can test using a practice demo account on the MetaTrader 4 platform.
This Ichimoku Kinko Hyo based system will also help traders to determine when there is a market reversal based on the indicators signals generated and therefore trades can know when to exit the market if they have open trades.
What is Ichimoku Kinko Hyo Indicator Based Trading? Indicator based system to interpret price and provide trading signals.
What is the Best Ichimoku Kinko Hyo Forex Strategy?
How to Choose the Best Ichimoku Kinko Hyo Forex Strategy
For traders researching on What is the best Ichimoku Kinko Hyo forex strategy - the following learn forex tutorials will help traders on the steps required to tutorial them with coming up with the best strategy for trading market based on the Ichimoku Kinko Hyo indicator system.
How to Create Ichimoku Kinko Hyo Forex Systems
- What is Ichimoku Kinko Hyo Indicator Strategy
- Creating Ichimoku Kinko Hyo Forex Strategy Template
- Writing Ichimoku Kinko Hyo Forex Strategy Rules
- Generating Ichimoku Kinko Hyo Forex Buy and Ichimoku Kinko Hyo Sell Signals
- Creating Ichimoku Kinko Hyo Indicator Forex System Tips
About Ichimoku Kinko Hyo Indicator Explained
Ichimoku Kinko Hyo Indicator
Ichimoku Kinko Hyo is a Japanese charting technique that was developed before by a Japanese newspaper writer, with the pen name of Ichimoku Sanjin.
- Ichimoku means 'a glance' or 'one look'
- Kinko means 'equilibrium' or 'balance'
- Hyo is the Japanese word for "chart"
Thus, Ichimoku Kinko Hyo means, 'a glance at an equilibrium chart'. Ichimoku attempts to identify the likely direction of price & help the trader to figure out the most suitable time to enter or exit the market.
Calculation
This indicator consists of five lines plotted using the midpoints of previous highs and lows. The five lines are calculated as follows:
1) Tenkan-Sen: Conversion Line: Red Line (Highest High + Lowest Low) / 2, for last 9 price periods
2) The Kijun-Sen: Base Line: Blue Line (Highest High + Lowest Low) / 2, for last 26 price periods
3) Chikou Span: Lagging Span: Green Coloured Line Today's close price plotted 26 price periods behind
4) The Senkou Span A: Leading Span A = (Tenkan-Sen + Kijun-Sen) / 2, plotted 26 price periods ahead
5) Senkou Span B: Leading Span B: (Highest High + Lowest Low)--/--2[Highest High + Lowest Low]--/--2, for the past 52 price periods, plotted 26 price periods ahead
Kumo: Cloud: area between Senkou Span A and B
FX Analysis & How to Generate Signals
Bullish signal - Tenkan-Sen crosses Kijun-Sen from below.
Bearish signal - Tenkan-Sen crosses Kijun-Sen from above.
However, there are different areas of strength for the buy and sell signals generated.
Analysis in Forex Trading
Bullish cross over signal occurs above the Kumo (clouds),
Strong buy signal.
Bearish cross-over signal occurs below the Kumo (clouds),
Strong sell signal.
If a bullish/ bearish cross-over signal takes place within the Kumo (clouds) it is considered a medium strength buy or sell signal.
A bullish cross-over that occurs below the clouds is considered a weak buy signal while a bearish cross over that occurs above the clouds is considered a weak sell signal.
Support and Resistance Areas
Support & resistance levels can be predicted by presence of Kumo (clouds). The Kumo also can be used to identify the prevailing trend of the forex market.
- If price is above Kumo, the prevailing market trend is said to be upwards.
- If price is below Kumo, the prevailing market trend is said to be downwards.
The Chikou Span or Lagging Span is also used to determine the strength of the buy or sell signal.
- If the Chikou Span indicator is below the closing price of the last 26 periods ago & a sell short signal is given, then the strength of trend is downwards, otherwise the signal is considered to be a weak sell signal.
- If there's a bullish signal & the Chikou Span is above the price of the last 26 periods ago, then the strength of trend is to the upside, otherwise it's considered to be a weak buy signal.
